What is Ex-factory terms in Imports and Exports
Thursday, October 27, 2016     Category : Inco Terms

What is exfactory price

 The information provided here is part of Export Import Online Tutorial


In this article, I will explain about Ex Factory Price used in any business, especially in Export and Import business.  What is Ex Works cost? Is Ex-works and Ex-factory same under delivery terms in an international trade? How does Ex Works terms of delivery work?

 

Ex works price and Ex-factory price are on of the same term. Ex factory or Ex works term is one of the delivery terms used in exports and imports.


What is ‘Ex-factory’ terms in Imports and Exports: Ex-factory price means, the selling cost of goods from Seller's factory. All other expenses from the factory of seller to buyer's premise has to  be born by the buyer. So the responsibility of getting goods from the seller’s factory is with the buyer. Here the buyer appoints a shipping and freight forwarding company to collect goods from the seller’s factory to the buyers place including insurance of goods.

I will explain Ex-factory terms of delivery with a simple example. You are a Machinary seller situated in a place near Mumbai, India. The buyer is situated in New york. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on ex-factory price of USD 5000. Here the selling cost of goods is USD 5000 ex-factory. As I have explained, all further cost to reach the goods to the buyers place has to be met by the buyer. As per the instruction given by the buyer, freight forwarder contact his counterpart in Mumbai and arrange pick up of goods from seller’s factory. Seller delivers goods to the freight forwarder after confirming the authenticity of the freight forwarder through his buyer. All expenses of freight forwarder will be paid by the buyer. Buyer arrange to insure the goods and pay the cost of insurance. Also read - Difference between Ex works and FOB 

Here, I have explained about Ex Factory  terms used in exports and imports.  Would you like to share your experience in handling Ex works terms of delivery?   Share your understanding about Ex works terms used in international trade.   

Did you like this article about Ex works terms of delivery in Imports and Exports?  Comment below your thoughts below: 


Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read.

 

 

 

 


The above information is a part of Import Export Training online


 

What is Ex-factory terms in Imports and Exports

 

Bill of export for Duty free Goods ex-bond

 

Terms used in freight forwarding such as entry,export receival advice,point of origin,ex works,export ,ex-factory,exempt carrier



Other information about Export import tutorial

Easy tips while deciding terms of delivery in export business:
What is FOB price in Exports and Imports and how it works
What is Terms of Delivery in Imports and exports
Who decides shipping carrier on FOB shipments
What is Nominated cargo or Routing order shipment
How C&F terms of delivery works in Export Import business
What is C& I terms of delivery in export import business?
What is DDP terms in an export Import Business?
Difference between DDU and DAP
Excise and Customs - Click here to read complete notification under Budget 2014
How to get Export Orders?
How to settle dispute in Exports and Imports?
Click here to know India Trade Classification(ITC)
Pre shipment bank finance to suppliers for exports through other agencies
Types of export containers
Measurement of export containers
Export Import Policy of India 2015-2020
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

 

Spelling error in LC? Is wrong spelling a discrepancy under Letter of credit?
Stuffing and De stuffing – 2 regular terms used in shipping
Surrender of Bill of Lading – Some facts
Switch BL
What is the difference between BAF and CAF
What is the difference between High sea sales and imports
What is the difference between re-exports and re-imports
How does First Appraisement system of import customs clearance procedures work?
How does Letter of Credit work?
How does Bill of Lading work in DP payment terms?  
How does STP units work in India?
What is VACIS exam in US import customs clearance
The term FCL. What is FCL means 
How does a Running bond work?

 

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

 

Triangular shipment

Types of Insurance Documents

 

Comments

 
Am Says :
Wednesday, July 17, 2013
hello! i'd like to ask regarding "ex-factory date" term. This is the payment term clause in one of our invoices: "20th day of the 4th month after the ex-factory date" * the invoice month is May and * the bill of lading month is June. So what would be the ex-factory date? is it the invoice month or bill of lading month? Thanks
kumar Says :
Thursday, July 25, 2013
As per my knowledge, the party should mention specifically whether date of invoice or date of bill of lading.
Rajiv Says :
Monday, November 17, 2014
Ex work sale is understood . What remains confusing , is that the seller will raise an export invoice in USD, on ex works basis . THey will also collect payment in forex from their buyer as per their business contract. Whose invoice will be used for clearing customs Pls clarify. Also as the factory owner has raised an export invoice in USD, what documents will be needed for the factory to prove that export of goods has been done . It is possible the new york buyer further sells the goods to some one in Australia.What happens in this case. Can the new york buyer become the exporter from India for shipment by air cargo or sea cargo. I look to hear from you ,
Admin Says :
Tuesday, November 25, 2014
Hi Rajiv, As you know, the exporter (seller) invoice is used for import customs clearance. Bill of Lading and Export Promotion copy of Shipping Bill (EP copy) are treated as document proof for export. Regarding triangular shipment, please read my other articles about the same.
Kumar Says :
Saturday, March 21, 2015
This article is of great help to me being first time merchant exporter. We have an export order with EXW terms which contain 18-20 lots of machinery/pipes/valves to be procured by me from different factories of chennai/B'lore/Mumbai/Nasik. The buyer will clear 90% payment EXW basis against inspection. Can we treat each of my vendor premise as a point of sale as the inspection is arranged at differant places? Is there any documatation haziles?
Sachin Shingane Says :
Friday, April 03, 2015
i am resonantly join in export industry and your information is really helpful thank you so much ..sachin
Sathisha Poojary Says :
Friday, January 20, 2017
Dear Sir I need clarification on ex-works, getting Certificate of Origin etc., from concerned authority is whose responsible seller or buyers responsible Thanks in advance Sathisha Poojary
adam Says :
Wednesday, February 08, 2017
who pays taxes and duties on ex works?
Robel hossain Says :
Saturday, April 08, 2017
Good evening, actually I want to be clear that is there any difference between Ex-work and Ex- factory?
 

Discussion Forum


You can also share your thoughts about this article.
Any one can answer on question posted by Readers



  Your Name - required  
  Email ID will not be published - Required  
   
(Enter above code)  


 

   
Track Your Air Shipment Here 
Track Your Sea Shipment Here 
   
   
   
   
   
 
Most Recent Articles
» Indian GST Acts
» GST rates for Goods and Services
» UTGST Act 2017
» IGST Act 2017
» CGST Act 2017
» GST for Services in India
» GST rate tariff for Commodities in India
» How to quote best airfreight? 14 tips
» Need airfreight quote? What is the nature of export goods?
» Read here before deciding airport of loading
  Import  |
  Export  |
  For Beginners  |
  Track Your Shipment  |
  Abbreviations  |
  Inco Terms  |
  Export India  |
  Import India  |
  Import US  |
  Export Import Terms  |
  Export incentives and benefits  |
  FAQ  |
  Bill of Lading  |
  Foreign Trade Policy 2015-20  |
  Start your own Export Import Business  |
  HS code  |
  Indian Budget 2014-15  |
  Banking (India)  |
  India Trade Classification (ITC)  |
  How to Import  |
  Containers  |
  Indian Budget 2015-16  |
  Income Tax  |
  Forms  |
  How to export  |
  Foreign Trade Policy 2014-19  |
  Freight forwarding Terms  |
  Business Terms  |
  Terms in Banking  |
  Shipping Terms  |
  Import Terms  |
  Export Terms  |
  Customs Terms  |
  Excise Terms  |
  International Business Terms  |
  Notifications  |
  GST  |
  SVB  |
  Indian Budget 2016-17  |
  Income Tax  |
  HS Codes  |
  GST Law  |
  GST,FAQ  |
  HSN Codes for GST  |
  SAC for GST  |
  Indian Budget 2017-18  |
  Service Tax 2017  |
  GST rates  |
  Logistics  |
  Me  |  Privacy policy  |  Terms and conditions  
Designed and Hosted by Adsin Media